MUMBAI: Chennai-based movie production, distribution and exhibition company Pyramid Saimira Theatre Ltd (PSTL) has decided to demerge its distribution and production subsidiaries from the parent company.

Analysts see the demerger as a step towards listing both the distribution and the production companies.

PSTL MD PS Saminathan had earlier told Indiantelevision.com that the production company would be listed.

PSTL houses its distribution business under Pyramid Saimira Content Distribution while production falls under Pyramid Saimira Production International Ltd. (production wing) from the parent company.”

Pyramid Saimira said today the demerger is subject to necessary approvals.

PSTL board today also approved the raising of up to $100 million through international offering of securities including Foreign Currency Convertible Bonds (FCCBs), Global Depositary Receipts (GDRs), American Depositary Receipts (ADRs).

PSTL has been facing serious liquidity crunch and has exited from the gaming business by selling its UK gaming subsidiary Aurona Technologies.

The company had earlier announced that due to huge business loses, the company suffered working capital erosion.